Japan Credit Rating Agency Maintains Indonesia's Sovereign Credit Rating at BBB+ with Stable Outlook

JAKARTADAILY.ID – The Japan Credit Rating Agency, Ltd. (JCR) once again maintained Indonesian Sovereign Credit Rating at BBB+ (Investment Grade) with a stable outlook on July 27, 2022.

This decision took into account the prospect of strong economic growth in line with improving domestic demand, controlled government debt, and external resilience supported by the accumulation of foreign exchange reserves.

JCR estimates that government debt will decline gradually as the fiscal posture improves, supported by increased revenues in line with improving economic growth and rising commodity prices.

Also read: Indonesian Minister of Manpower: Economic Conditions in the Labor Sector Beginning to Show Signs of Recovery

On the other hand, JCR also looked at the challenges stemming from the high dependence on natural resource commodities and low government revenues.

"The affirmation of Indonesia's rating at BBB+ with a stable outlook shows that international stakeholders still have strong confidence in the maintenance of macroeconomic stability and Indonesia's medium-term economic prospects, amidst the risk of the impact of the global economic slowdown on domestic economic growth," said the Governor of Bank Indonesia, Perry Warjiyo in a press release announcing JCR's decision.

"This is supported by policy credibility, as well as a strong synergy in the policy mix between Bank Indonesia and the Government,” Perry said.

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Perry added that going forward, Bank Indonesia will continue to monitor global and domestic economic and financial developments, formulate and implement the necessary steps to ensure macroeconomic and financial stability, including further adjustments to the policy stance if necessary, and continue to strengthen synergy with the government to accelerate the recovery of the national economy.

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